Before Tuesday's market open, Lockheed Martin reported adjusted earnings of $3.23 per share, topping analysts' projections for $3.11 per share. Revenue, for the three months to June 25, spiked nearly 10% to $12.69 billion, beating estimates for $12.44 billion.
The quarter was primarily driven by the near 20% increase in sales in its aeronautics unit, which includes its F-35 stealth fighter, the world's largest defense program. Lockheed's aeronautics business accounted for 41% of total group revenue and operating profits during the second quarter.
Lockheed also raised its guidance for the year as it forecast diluted earnings per share for 2017 in a range of $12.30 to $12.60, up from the $12.15 to $12.45 it was projecting just three months ago.
Net sales are expected to be between $49.8 billion to $51 billion, compared to its prior estimates of $49.5 billion to $50.7 billion.
What's Hot On TheStreet
Netflix is so impressive: By trouncing quarterly subscriber estimates and issuing solid guidance, Netflix Inc. (NFLX - Get Report) did much to put to rest fears that its stock had gotten ahead of itself following a 31% rise so far in 2017, TheStreet's Eric Jhonsa says. The streaming giant also showed that it has reached a point where its sheer scale provides a competitive edge that makes it hard for even deep-pocketed tech and media rivals to slow it down, Jhonsa adds.
Overall, Netflix is an unstoppable beast because millennials like watching movies on the couch.
Tesla is bizarre: Tesla Inc. (TSLA - Get Report) is adding two new executives from major media corporations to its board of directors after investors urged the electric carmaker to add members without close ties to CEO Elon Musk, TheStreet reports.
James Rupert Murdoch, the CEO of Twenty-First Century Fox Inc. (FOXA) , and Linda Johnson Rice, the chairman of Johnson Publishing Co., will join Tesla's board, according to a company blog post.
Though the new board members are indeed independent, according to BoardEx, a relationship mapping service of TheStreet Inc., they lack experience in the car industry and have loose ties to the technology industry at best. Seeing as Tesla is burning through cash at a startling pace and is undergoing a Model 3 production ramp, adding experienced car or tech people to the board would have seemed like a better idea.
Vicious downgrade on one hot tech stock: Barclays downgraded Advanced Micro Devices (AMD - Get Report) to a price target of $9 on Tuesday TheStreet reports, giving it a rating of underweight from equal weight, saying that the valuation was pricing in a high degree of success but there is little evidence of share gains.
Barclays analyst Blayne Curtis predicted the stock would crash 35% from current levels. Since the beginning of June, shares of AMD have gained 23.5%, while Nvidia (NVDA - Get Report) has risen almost 14%, on the back of a surge in demand for GPUs used to mine an alternative cryptocurrency called Ethereum (the units are known as Ether), TheStreet's Annie Palmer reports. A wave of bullish reports has come out since then saying that the boost in cryptocurrency mining demand could help Nvidia and AMD rise above a seasonally weaker fiscal second quarter, among other benefits.
But thanks to a steep drop in the prices of cryptocurrencies, the benefits may already be priced into the current quarter, with little left to gain thereafter, according to analysts.
Deutsche Bank analyst Sherri Scribner said expectations for Apple are too high, warning investors that they might be disappointed with iPhone sales growth in 2018 and 2019.
A market overly optimistic on future sales is "ignoring the fundamental challenges Apple faces in the smartphone market," Scribner wrote. Those challenges include saturation due to elongated refresh cycles, declining share, increased Chinese competition and a growing secondary market.
WATCH HERE: TheStreet's new series #AlphaRising:
- Meet The Women Redefining Business in TheStreet's New Series, Alpha Rising
- Carly Fiorina: We Have a Shortage of Leaders
- Alpha Rising: Meet The Children's Place CEO Jane Elfers
- Alpha Rising: Victoria Schein, Ford Engineer, Making History One Patent at a Time
- EY's Kerrie MacPherson Discusses the Importance of Diversity
- Meet Ford's 23-Year-Old Prodigy Who Holds 15 Patents
- EY: No Company Can Afford to Disenfranchise Half the Workforce
- Why Shark Tank Star Kevin O'Leary Would Rather Invest in a Startup Run by Women